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Treasury Bonds Reach 50% Retracement Level

Discussion in 'Forex Daily News & Outlook' started by futuretrends24, Oct 28, 2010.

  1. futuretrends24

    futuretrends24 New Member

    Apr 30, 2009
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    Today’s sample of Futures Analysis from FuturesHound.com

    December Treasury Bonds finished under pressure on Wednesday after a Wall Street Journal news story broke saying that the Fed was likely to purchase only about a quarter of the $1 trillion in assets that the market had price in during its latest round of quantitative easing.

    Since the Fed first started to hint at additional QE, traders had been buying up T-Bonds on speculation that the central bank was going to be in the market to buy up to $1 trillion of government assets. About the middle of the month, a top was formed after Fed Chairman Bernanke implied that the Fed may not be as aggressive as traders thought. This triggered a sell-off, but it was the combination of today’s WSJ article and a better-than-expected Durable Goods report that drove this market down into the close and into a key 50% area.

    Technically, based on the main range of 124’22 to 135’19, key support has now been identified as 130’05 to 128’27. This is a wide range so watch for traders to try to build a support base inside of this zone.

    Read full article at FuturesHound.com as well as Futures Analysis, Futures Education and exclusive timely market Gann Analysis

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